Capgemini Divests U.S. Unit Amid Scrutiny Over ICE Software Contract
French technology conglomerate Capgemini announced on Sunday it is initiating the divestment of its U.S.-based subsidiary, Capgemini Government Solutions, which holds a software contract with U.S. Immigration and Customs Enforcement (ICE). The move comes amid growing pressure from French legislators and the company's own trade union over the ethical implications of the work.
In a statement, the €24 billion firm cited "legal constraints" that prevented it from exerting direct operational control over the subsidiary's activities. Public records show the unit has been under contract since December to provide software capable of detecting and locating foreign nationals.
"We were recently made aware of the nature and scope of this work," Capgemini CEO Aiman Ezzat wrote in a LinkedIn post last week, acknowledging that the contract "raised questions" inconsistent with the company's typical business and technological profile. The subsidiary accounted for approximately 0.4% of the group's revenue last year.
The decision unfolds against a backdrop of heightened public scrutiny of corporate ties to federal immigration enforcement. Recent fatal shootings of American citizens Renee Nicole Good and Alex Pretti by federal immigration agents in Minneapolis have sparked nationwide protests and galvanized calls for consumer boycotts targeting companies perceived as supporting administration policies.
Last Friday's "National Shutdown" saw organizers call for a 24-hour general strike, urging business closures and a consumer spending freeze. Concurrently, a campaign led by podcaster Scott Galloway has urged Americans to "opt out" of services like OpenAI's ChatGPT and Amazon Prime Video for the month of February to pressure large technology firms.
"Small changes in consumer behavior... could have an enormous ripple effect, one that extends all the way to the White House," Galloway argued in a blog post. Separately, a petition signed by hundreds of tech workers, titled "Tech demands ICE out of our cities," calls on industry leaders to lobby the White House directly.
Capgemini's divestment highlights the increasing dilemma for global tech firms operating in politically charged environments, where commercial contracts can collide with human rights concerns and stakeholder expectations. The company stated the sale process would begin immediately. Capgemini Government Solutions did not immediately respond to requests for comment.
Reactions & Analysis
Marie Dubois, Tech Policy Analyst, Brussels: "This is a pragmatic, if belated, risk-management move. Capgemini is prioritizing its reputation and European stakeholder relations over a minor revenue stream. It sets a precedent for other multinationals auditing their government portfolios."
David Chen, Software Engineer, San Francisco: "Finally, some accountability. Tech workers have been shouting about this for years. Building tools for mass surveillance and deportation is incompatible with ethical tech principles. This divestment is a direct result of sustained internal and public pressure."
Senator Jean Lefevre, French Parliament: "A necessary step. French companies, especially flagships, must ensure their global operations align with our nation's values. Contracts that facilitate aggressive immigration enforcement tactics should not be in their portfolio."
Rebecca Vance, Commentator, 'The Daily Pulse' Podcast: "This is pure hypocrisy and virtue-signaling. They happily took the money for months until they got caught in the spotlight. Now they're scrambling to save face. It's a calculated PR move, not a moral stand. The damage is already done."